6 ways for advisors to evolve a client-focused business strategy

Advisors recognize the need to constantly improve their business to compete more effectively with peers, but they haven’t always had access to tools and information that can help identify a practice’s strengths and weaknesses.

The Practice Innovation Index, recently launched by global asset management firm Invesco and wealth management data specialist Cerulli Associates, is an all–in-one platform that enables planners to see where they rank versus their competitors in key areas, such as practice management and client services. 

Paul Brunswick, head of Invesco Global Consulting, said most advisors aren’t able to pinpoint the weaker areas of their practices, and aren’t always clear on how to fix them. “The index closes the gap between knowing and doing,” Brunswick said. “It’s closing the gap that creates success.”

Read more: Cerulli-Invesco tool lets financial advisors see how practices measure up against peers

The unexpected emergence of the global pandemic jolted the industry into a state of anxiety over the impact on business and, specifically, on client relationships.

Faced with this challenge, advisors have been creative in adapting to the new circumstances and taking a proactive approach to clients that has led to better, stronger relationships.

“There are things the pandemic taught us that made us better as advisors and as humans — namely, how to connect with clients on a deeper, more meaningful level,” said managing director Eden Lopez at RBC Wealth Management. “Why wouldn’t we carry that lesson forward?”

Read more: We learned to connect with clients virtually during the pandemic — and we plan to keep it up

If wealth managers were not already fully aware of the Darwinian principle that it is not the strongest or most intelligent that survives, but the one that is most adaptable to change, the pandemic provided a timely reminder. 

Firms rapidly adapted to a changed world by embracing digital transformation, with video conferencing, online portfolio access and other forms of digital client engagement becoming the norm. But human interaction still remains vital, and a hybrid approach to wealth management appears to be the future.   

“In many ways there has never been a better time to be a hybrid wealth manager — one who uses both in-person and digital approaches to build a relationship with clients,” said Will Bailey, chief strategy officer at InvestCloud, a proponent of the need to evolve and adapt.

Read more: The future of wealth management is hybrid — both digital and in-person